Ontario restaurant price hikes boost food inflation after minimum wage increase


Restaurant price hikes led food inflation 3.7 per cent higher year-over-year in January, with analysts saying the bump likely comes from Ontario eateries attempting to offset the province’s recent minimum wage increase.

Statistics Canada says food prices were 2.3 per cent higher last month compared to January 2017. That follows a 2.9 per cent year-over-year increase for dining out in December.

CIBC World Markets’ Royce Mendes says strengthening consumer prices could in part be attributed to Ontario increasing its minimum wage more than 20 per cent at the start of the year.

He notes Ontario outpaced other provinces and territories in monthly price increases in certain categories, including restaurant prices.

Statistics Canada’s figures show the province’s restaurant prices in January rose 1.9 per cent from the previous month. The next largest monthly increase happened in Alberta where prices rose 0.7 per cent.

BMO Capital Markets senior economist Robert Kavcic says Ontario’s large jump in restaurant prices is “an entirely predictable response.”

The Canadian Press


  1. Ya what do you expect and the price of food will fallow this the only thing thing that wont go up is wages for trades people and others with skills .whos going to do trade or skilled labor ,when you can flip buggers or push a broom,no presser and clean environment.and also elderly get screwed just because the no skill untrained dummys wont improve there skills or education what a stupid government we have. Just like the gun registration,that went well millions of $ down the tubeand scraped it because it dint work could have put that money into the hospitals

  2. Who ever organized these outrageous protests and single out Tim Hortons should be ashamed of themselves. Can i suggest your solicit each and every business who has cut back for good reasons to offset the higher costs. Obviously you know nothing about being in business and also may i suggest you do some research before you start pointing fingers and openly admit that you were quite surprised when you find out facts before yopu organize your next radical protest.. Most part time employees kept their jobs but the benefits were reduced and no laws were broken . Other businesses had to lay off just to accommodate the increase. I am quite confident that after your research you will sing a different tune . BY THE WAY I AM NOT A COFFEE DRINKER NOR DO I GO TO TIM HORTONS . If one of the organizers has a relative that owns a business that did the same to makes ends meet then go and protest in front of their business . BET THAT WON’T HAPPEN .

  3. Why target Tim Hortons? Most other businesses have raised their prices as well due to the increase in minimum wage. So it is not only a few cents for a cup of coffee —(which by the way is treat ) and why don’t you stay home and have your coffee there? Check out the prices of food clothing etc and you will realize that the minimum wage increase has a great impact on the price of things to buy .Not to mentioned how many part time jobs were lost because of this increase . The cost of goods are far higher than the increase itself. On the increase you pay more tax , cpp, ei and figure out how much money is left in the $2.40 . Do some research and math and you might understand .

Comments are closed.